siliconindia | | MARCH 20228EducationHAVE WE APPRECIATED CRYPTO-CURRENCIES ENOUGH?The crypto industry had an incredible year in 2021. From Bitcoin and Ethereum reaching new all-time highs to the widespread adoption of Non-Fungible Tokens, almost every aspect of the industry experienced a surge. Previous year, India had the world's second-highest number of cryptocurrency users, and India-based crypto exchange platforms drew millions of users, with CoinSwitch alone attracting over 15 million. This year,the cryptocurrency debate is already raging with calls for regulation causing a schism between jurisdictions that are `crypto friendly' and those that aren't. Which of the subsequent factors will have the greatest impact on the market's future? And how it can be helpful for day-to-day transactions in today's world.Cryptocurrency: The Emergence With the introduction of Bitcoin in 2009, cryptocurrency went from an academic concept to digital reality. While Bitcoin's popularity has grown in the years since, it received significant investor and media attention in April 2013, when it peaked at a record $266 per bitcoin after surging 10-fold in the previous two months. The currency had a market value of more than $2 billion at its peak, but a 50 percent drop shortly after sparked a raging debate about the future of cryptocurrencies in general, and Bitcoin in particular. But today, there are thousands of cryptocurrencies that are publicly traded, and more are constantly being added to the market. Many of these cryptocurrencies are unknown and have little trading volume such as Ethereum, Litecoin, and Bitcoin Cash which are examples of popular and widely traded cryptocurrencies.Enabling Payments: A Better Medium of ExchangeCryptocurrency functions similarly to physical currency as a medium of exchange. It can be used to pay for goods and services, yet best known as a speculative investment asset. It uses blockchain technology to record transactions in a ledger system and the most important aspect of this technology is that it can be viewed publicly but cannot be changed or controlled by any single entity, making cryptocurrency safe for online transactions and nearly impossible to forge.Blockchain Technology: A Clear LookThe term `blockchain technology' first appeared in academic papers in 1982, in a dissertation on `the design of a distributed computer system that can be established, maintained, and trusted by mutually suspicious groups.' Today, bitcoin, ethereum, and other cryptocurrencies have grown in popularity, and blockchain technology has promising applications in legal contracts, property sales, medical records, and any other industry that requires the authorization and recording of transactions. It is basically a digital ledger of transactions that is kept secure by a network of computers and is difficult to hack or alter. People can now transact directly with one another without the need for an intermediary such as a government, bank, or other third party.IN FOCUSBy si Team
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